AUD/USD: Using Forecast Area Support to Set up a Trade

The 240 minute AUD/USD timeframe has broken the Continuation Rising Wedge pattern and is currently reaching the support at the Forecast area (F).  Keep in mind that only complete chart pattern alerts have the forecast area plotted on the chart.  The support extends from the 0.9230 level down to the 0.9160 level.  This area must be considered a potential reversal area as well.

Capitalizing on forecast areas means that essentially the support of the follow through could set up a buying opportunity on another time frame.  The Initial Trend reading (T) indicates that the trend may be slowing; it certainly is not an indication of a strong trend.

Since the trend is likely to shift according to the Initial Trend reading, there is an opportunity for an aggressive buy off the Forecast area support.  With today's low at 0.9209 the support of the psychological level could also be a factor in buying support.

For further information on this and other chart patterns visit www.autochartist.com